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An inflationary Bomb is About to Blow – It’s Time to Prepare for the Next Gold Bull Market

US Fed chair Jerome Powell finally admitted that inflationary pressures weren’t going to be as sh­­ort-lived as perhaps expected…

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This article was originally published by Stockhead

US Fed chair Jerome Powell finally admitted that inflationary pressures weren’t going to be as sh­­ort-lived as perhaps expected.

Earlier this week Powell surprised markets by suggesting it would be appropriate to drop the phrase “inflation is transitory” from the Fed’s lexicon.

For gold bugs, the prospect of higher inflation is often viewed as a good thing. Gold is an ‘inflation hedge’; an investment that ostensibly protects the buyer from decreased purchasing power of a currency due to rising prices.

Which is happening right now, everywhere.

Goehring & Rozencwajg Associates managing partner Leigh Goehring told Kitco that we are “getting closer to the explosion of gold prices to the upside”.

“There are too many similarities between now and the late 1960s and early 1970s, and they cannot be ignored,” he says.

“Back then, inflation was going up about 5%-6% per year — the same as now. And then, in 1973, there was the black swan event — the oil embargo.”

Oil went from $US4 a barrel up to $US15 a barrel literally overnight.

This time there’s a difference, Goehring says.

“This time around the Fed will have to give up on raising rates because it will be too painful for everyone,” he says.

“Once the precious metal bottoms from the Fed’s tightening action, it will begin its massive bull market.”

‘Rapidly approaching an inflection point’

In November, Goehring & Rozencwajg wrote that multiple trends supported the view that we are rapidly approaching inflation’s inflection point.

“In 2019, M2 [money supply] was only growing at 4% per year; today it is growing at 27% per year — the fastest rate in history,” they say.

All this free cash means shortages are starting to develop, Goehring & Rozencwajg say, in everything from timber, semiconductors, restaurant workers and ketchup packets.

Meanwhile, economically sensitive commodities such as copper have entered new bull markets while surging grain prices warn of significant food inflation ahead.

“Despite these trends, investors continue to pile into technology stocks, SPACs, cryptocurrencies and long-term bonds; each of which will perform terribly in an inflationary environment,” Goehring & Rozencwajg say.

“In stark contrast, inflation hedges like gold remain priced at record low levels relative to financial assets and are ignored by almost all investors.

“The countdown to inflation is ticking and we are getting closer and closer to an explosion in inflationary pressures,” Goehring & Rozencwajg says.

“All economic signs point in that direction, yet few investors are prepared to protect themselves, yet alone profit from an investment landscape that is about to suddenly and radically change.”

USD (dark) and AUD (light) gold prices over the past 12 months. Sources: FastMarkets, ICE Benchmark Administration, Thomson Reuters, World Gold Council

Winners & Losers

Here’s how ASX-listed gold & silver stocks are performing:

Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop

>>> Stocks missing from this list? Email [email protected]

 
 
CODE COMPANY 1 WEEK RETURN % 1 MONTH RETURN % 6 MONTH RETURN % 1 YEAR RETURN % SHARE PRICE [INTRADAY FRI] MARKET CAP
MRR Minrex Resources 138 163 100 108 0.05 $ 23,959,869.26
NPM Newpeak Metals 50 0 -25 -50 0.0015 $ 11,137,027.65
ASO Aston Minerals 36 25 -30 275 0.15 $ 143,129,614.35
MTC Metalstech 29 -1 94 103 0.33 $ 58,332,606.50
FFX Firefinch 26 34 113 459 0.81 $ 811,237,149.72
GED Golden Deeps 25 25 25 7 0.015 $ 10,861,920.16
G88 Golden Mile Res 22 6 -8 8 0.056 $ 9,406,008.04
DCX Discovex Res 11 0 -23 -17 0.005 $ 10,274,656.30
NMR Native Mineral Res 10 17 5 -24 0.275 $ 8,981,675.28
AQX Alice Queen 10 -15 -27 -59 0.011 $ 15,072,453.11
SLZ Sultan Resources 10 -3 -41 -28 0.17 $ 11,125,502.24
MKG Mako Gold 10 26 22 0 0.115 $ 43,957,784.23
KSN Kingston Resources 9 -10 -16 -33 0.19 $ 65,990,343.05
AMI Aurelia Metals 8 14 -2 -2 0.42 $ 513,378,429.66
PNX PNX Metals Limited 8 0 -30 17 0.007 $ 23,739,257.82
GIB Gibb River Diamonds 7 1 17 -40 0.09 $ 19,035,850.05
KCN Kingsgate Consolid. 6 9 67 92 1.5 $ 336,407,088.56
TMX Terrain Minerals 6 6 -15 -23 0.0085 $ 6,253,968.58
BNR Bulletin Res 6 15 29 24 0.086 $ 21,570,721.31
NXM Nexus Minerals 6 31 540 275 0.525 $ 145,417,789.60
SKY SKY Metals 6 15 -42 -54 0.093 $ 35,040,862.71
LM8 Lunnonmetalslimited 6 -5     0.375 $ 26,044,053.04
CST Castile Resources 5 -26 -20 -29 0.2 $ 39,942,024.20
YRL Yandal Resources 5 -8 -31 -17 0.41 $ 40,204,372.65
FAU First Au 5 -9 -42 -48 0.0105 $ 7,682,859.40
ARL Ardea Resources 5 14 17 23 0.545 $ 69,415,109.50
GWR GWR Group 5 0 -54 -41 0.11 $ 31,792,576.52
AGG AngloGold Ashanti 4 22 -7 -6 5.8 $ 524,541,658.20
IVR Investigator Res 4 13 -27 33 0.077 $ 103,267,835.35
GTR Gti Resources 4 -10 27 62 0.027 $ 29,348,311.93
IPT Impact Minerals 4 -4 -16 -39 0.0135 $ 27,321,231.41
BNZ Benzmining 3 7 -24   0.695 $ 34,824,770.64
MOH Moho Resources 3 5 -22 -46 0.062 $ 7,798,074.92
BBX BBX Minerals 3 3 -37 -42 0.165 $ 75,573,543.38
PUA Peak Minerals 3 -8 -21 -41 0.0165 $ 14,276,841.92
MRZ Mont Royal Resources 3 -18 4 15 0.35 $ 20,417,582.85
SMS Starmineralslimited 3 -9     0.18 $ 4,725,000.00
MVL Marvel Gold Limited 3 4 41 29 0.072 $ 42,259,162.18
PRX Prodigy Gold NL 3 6 -35 -36 0.037 $ 21,557,221.42
AAU Antilles Gold 3 1 23 29 0.076 $ 22,800,372.08
CWX Carawine Resources 3 -3 -22 -26 0.195 $ 26,541,863.99
RND Rand Mining 2 6 9 -29 1.49 $ 84,745,181.89
CAZ Cazaly Resources 2 0 -29 -6 0.044 $ 16,260,783.75
BMR Ballymore Resources 2 -8 0 0 0.22 $ 15,725,177.82
DRE Drednought Resources 2 21 92 109 0.046 $ 130,418,443.35
ZNC Zenith Minerals 2 0 -6 74 0.235 $ 79,332,017.98
REZ Resourc & En Grp 2 -2 71 -11 0.048 $ 23,990,677.87
LEX Lefroy Exploration 1 -13 -72 84 0.35 $ 49,452,308.64
ERM Emmerson Resources 1 -10 -6 0 0.077 $ 37,866,125.16
AM7 Arcadia Minerals 1 4     0.2075 $ 6,840,000.00
ADT Adriatic Metals 1 -5 8 24 2.69 $ 623,694,432.04
GMR Golden Rim Resources 1 1 -45 -39 0.091 $ 22,874,715.05
CYL Catalyst Metals 1 8 8 -21 2.19 $ 215,618,033.37
CHN Chalice Mining 0 48 4 146 9.45 $ 3,351,093,182.80
KAL Kalgoorliegoldmining 0       0.16 $ 10,865,190.00
MLS Metals Australia 0 25 25 25 0.0025 $ 10,477,114.72
ADN Andromeda Metals 0 -3 -20 -40 0.16 $ 397,396,327.36
MEI Meteoric Resources 0 -11 -69 -71 0.017 $ 24,858,956.16
SRN Surefire Rescs NL 0 -8 -45 -73 0.012 $ 13,251,724.91
SIH Sihayo Gold Limited 0 13 -25 -55 0.009 $ 29,483,691.30
AWV Anova Metals 0 0 -13 -26 0.02 $ 28,661,884.00
HMX Hammer Metals 0 -12 -56 28 0.046 $ 33,353,279.54
WCN White Cliff Min 0 23 -11 -45 0.016 $ 8,275,142.38
PAK Pacific American Hld 0 0 -9 -17 0.017 $ 8,123,915.83
WRM White Rock Min 0 2 -48 -47 0.31 $ 44,164,389.32
TNR Torian Resources 0 -15 -32 -26 0.023 $ 25,070,968.14
MCT Metalicity Limited 0 0 -25 -47 0.009 $ 19,293,943.79
AME Alto Metals Limited 0 5 14 5 0.105 $ 53,649,042.51
CTO Citigold Corp 0 -9 -9 -23 0.01 $ 28,336,590.91
TIE Tietto Minerals 0 4 15 6 0.42 $ 250,663,531.35
SMI Santana Minerals 0 25 175 94 0.33 $ 42,443,932.16
M2R Miramar 0 14 -2 -38 0.205 $ 10,212,079.10
MHC Manhattan Corp 0 -17 -29 -66 0.01 $ 15,262,786.93
GRL Godolphin Resources 0 0 -9 -43 0.145 $ 12,196,134.30
TRY Troy Resources 0 0 -20 -56 0.037 $ 30,073,993.35
KGM Kalnorth Gold 0 0 0 0 0.013 $ 11,625,120.78
CGN Crater Gold Min 0 0 -11 -19 0.017 $ 20,867,429.74
LNY Laneway Res 0 20 20 -25 0.006 $ 19,520,329.67
TSC Twenty Seven Co. 0 -10 -10 -25 0.0045 $ 10,643,255.62
GUL Gullewa Limited 0 -6 -8 -24 0.08 $ 15,229,848.00
CY5 Cygnus Gold Limited 0 16 20 3 0.18 $ 20,953,432.98
G50 Gold50Limited 0 12     0.28 $ 14,089,040.28
ADV Ardiden 0 9 9 -40 0.012 $ 25,840,024.27
AAR Anglo Australian 0 10 2 -39 0.092 $ 54,848,489.99
MGV Musgrave Minerals 0 -14 -20 -14 0.345 $ 182,638,802.66
AGS Alliance Resources 0 -11 13 -16 0.17 $ 35,362,912.78
VMC Venus Metals Cor 0 0 -14 -18 0.18 $ 27,194,162.94
NAE New Age Exploration 0 0 -35 -15 0.011 $ 15,794,888.01
VKA Viking Mines 0 -22 -45 -33 0.018 $ 18,454,651.76
LCL Los Cerros Limited 0 -10 -26 8 0.13 $ 82,721,126.15
MTH Mithril Resources 0 13 3 -23 0.017 $ 43,863,961.70
DDD 3D Resources Limited 0 0 -33 21 0.004 $ 15,521,488.37
RMX Red Mount Min 0 0 5 -17 0.01 $ 14,644,583.02
PRS Prospech Limited 0 -18 -58 0 0.074 $ 4,823,394.37
XTC Xantippe Res 0 13 125 125 0.0045 $ 20,382,822.01
TTM Titan Minerals -1 -12 -17 -17 0.095 $ 132,174,782.31
NML Navarre Minerals -1 -17 -30 -65 0.074 $ 84,355,579.68
RXL Rox Resources -1 -1 -15 -50 0.37 $ 59,102,855.25
MZZ Matador Mining -1 -4 -29 1 0.355 $ 70,189,924.03
KZR Kalamazoo Resources -1 -1 -23 -35 0.345 $ 48,566,087.56
BCN Beacon Minerals -2 0 -14 -5 0.031 $ 111,329,059.75
MAU Magnetic Resources -2 -5 0 28 1.495 $ 340,350,644.40
BC8 Black Cat Syndicate -2 0 -23 -19 0.56 $ 78,852,374.16
EM2 Eagle Mountain -2 -18 -46 57 0.54 $ 118,245,330.76
EMR Emerald Res NL -2 11 -2 72 1.065 $ 548,898,025.46
BYH Bryah Resources -2 0 -33 -24 0.053 $ 11,762,773.10
HCH Hot Chili -2 -14 6 -7 2.01 $ 176,849,889.00
WAF West African Res -2 0 17 30 1.2725 $ 1,301,486,652.38
MEU Marmota Limited -2 -4 -4 -9 0.043 $ 42,143,496.59
NVADB Nova Minerals -2 -12 -6 -29 1.27 $ 227,334,770.12
DCN Dacian Gold -2 -9 -29 -41 0.205 $ 198,323,150.82
SVL Silver Mines Limited -2 -7 -36 0 0.205 $ 258,366,428.60
PGD Peregrine Gold -3 4 5   0.385 $ 12,935,536.08
ICL Iceni Gold -3 -31 -8   0.19 $ 22,758,198.67
FG1 Flynngold -3 23     0.185 $ 10,784,128.50
WWI West Wits Mining -3 -6 -60 -51 0.036 $ 48,743,458.38
RML Resolution Minerals -3 -5 -25 -57 0.018 $ 11,814,598.78
AAJ Aruma Resources -3 -11 14 -26 0.072 $ 9,069,228.22
AL8 Alderan Resource -3 -16 -38 -62 0.035 $ 14,469,246.72
GMN Gold Mountain -3 -8 -54 -58 0.0175 $ 18,727,610.48
MEG Megado -3 5 -33 -48 0.097 $ 4,089,635.81
HMG Hamelingoldlimited -3       0.16 $ 16,500,000.00
HMG Hamelingoldlimited -3       0.16 $ 16,500,000.00
TBA Tombola Gold -3 -6 -30 -24 0.032 $ 23,223,179.20
DGO DGO Gold Limited -3 0 -18 -4 2.88 $ 239,997,954.24
PF1 Pathfinder Resources -3 5 0 54 0.3 $ 15,670,697.95
TBR Tribune Res -3 -1 -6 -22 4.79 $ 251,322,088.83
FML Focus Minerals -3 4 -5 -16 0.285 $ 52,083,341.03
GSR Greenstone Resources -3 4 33 -10 0.028 $ 21,791,124.60
VRC Volt Resources -3 4 -13 155 0.028 $ 74,137,760.34
ARV Artemis Resources -4 -15 35 -30 0.081 $ 100,399,812.08
HRN Horizon Gold -4 -13 -25 -7 0.385 $ 43,743,726.56
CLA Celsius Resource -4 -11 -40 -47 0.025 $ 24,086,245.86
QML Qmines Limited -4 -1 -9   0.375 $ 20,644,755.52
RDN Raiden Resources -4 0 -8 -14 0.024 $ 33,007,855.30
TCG Turaco Gold Limited -4 -20 0 100 0.12 $ 49,027,694.82
KCC Kincora Copper -4 -18 -61   0.115 $ 8,808,434.28
GBZ GBM Rsources -4 -21 -15 -15 0.115 $ 58,283,070.31
DTM Dart Mining NL -4 -13 -43 -43 0.091 $ 10,208,256.26
MKR Manuka Resources. -4 -4 -16 -22 0.34 $ 34,506,961.42
AUC Ausgold Limited -4 2 -12 -12 0.045 $ 71,340,729.35
ANX Anax Metals -4 -22 -7 34 0.09 $ 28,014,711.20
EMU EMU NL -4 -19 -46 -45 0.022 $ 12,095,918.65
SFM Santa Fe Minerals -4 21 10 12 0.11 $ 7,645,972.85
SSR SSR Mining Inc. -4 16 1 -8 24.5 $ 522,074,658.00
PNR Pantoro Limited -4 44 41 59 0.325 $ 443,992,089.87
CMM Capricorn Metals -4 6 40 65 2.8 $ 1,047,964,375.39
MML Medusa Mining -4 -3 -14 -2 0.75 $ 154,927,444.25
SI6 SI6 Metals Limited -5 -5 -13 -25 0.0105 $ 14,281,439.85
HAW Hawthorn Resources -5 102 91 5 0.105 $ 33,351,561.30
BGD Bartongoldholdings -5 17     0.205 $ 17,597,199.18
SVY Stavely Minerals -5 11 -7 -44 0.51 $ 130,480,726.00
AOP Apollo Consolidated -5 -8 100 107 0.6 $ 169,139,942.20
KWR Kingwest Resources -5 67 120 25 0.2 $ 49,530,157.63
AGC AGC -5 -10 -41   0.095 $ 6,705,001.12
AGC AGC -5 -10 -41   0.095 $ 6,705,001.12
RVR Red River Resources -5 -5 -17 -32 0.19 $ 93,323,607.84
RGL Riversgold -5 -17 -54 -54 0.019 $ 7,676,801.72
TSO Tesoro Resources -5 -7 -55 -78 0.075 $ 41,400,516.00
OKR Okapi Resources -5 -15 102 174 0.465 $ 45,924,807.66
CPM Coopermetalslimited -5       0.185 $ 4,998,700.00
MM8 Medallion Metals. -5 -8 -38   0.185 $ 20,600,759.21
TRN Torrens Mining -5 -11 -5   0.1375 $ 9,404,766.63
AUT Auteco Minerals -5 0 -22 -27 0.073 $ 121,548,883.39
CBY Canterbury Resources -5 -19 -6 -11 0.089 $ 10,697,669.17
LYN Lycaonresources -6       0.42 $ 11,070,000.00
SFR Sandfire Resources -6 8 -11 18 5.95 $ 2,418,893,168.70
NCM Newcrest Mining -6 -6 -20 -19 22.68 $ 18,821,217,514.71
TMZ Thomson Res -6 -17 -54 -22 0.065 $ 36,103,298.92
TAM Tanami Gold NL -6 -10 -11 -13 0.065 $ 76,381,307.99
KLA Kirkland Lake Gold -6 -2 -3 -5 53.57 $ 53,760,000.00
WMC Wiluna Mining Corp -6 3 1 -29 1.04 $ 199,873,968.08
NWM Norwest Minerals -6 3 -8 -11 0.079 $ 14,267,974.73
ALK Alkane Resources -6 -10 -19 -26 0.785 $ 452,643,399.20
BMO Bastion Minerals -6 -18 18   0.23 $ 16,543,729.80
IDA Indiana Resources -6 11 -23 2 0.061 $ 26,531,764.56
GSM Golden State Mining -6 -13 -48 -60 0.091 $ 7,561,006.64
NSM Northstaw -6 5 -2 -36 0.3 $ 12,038,100.00
GSN Great Southern -6 -14 12 -19 0.059 $ 31,859,126.46
RED Red 5 Limited -7 4 50 -3 0.255 $ 612,653,769.52
DEG De Grey Mining -6 5 -26 8 1.17 $ 1,624,419,171.38
THR Thor Mining PLC -7 -18 -13 -26 0.014 $ 8,949,323.39
CDR Codrus Minerals -7 4     0.14 $ 5,800,000.00
MDI Middle Island Res -7 -1 -11 -64 0.098 $ 11,996,985.76
BAT Battery Minerals -7 8 -33 -36 0.014 $ 29,444,835.46
POL Polymetals Resources -7 0     0.14 $ 5,714,358.36
OKU Oklo Resources -7 4 12 -39 0.14 $ 70,564,173.68
RDS Redstone Resources -7 -7 -18 17 0.014 $ 9,346,987.82
NAG Nagambie Resources -7 -13 -1 46 0.07 $ 34,995,264.22
BGL Bellevue Gold -7 -11 -12 -43 0.765 $ 788,869,285.97
GBR Greatbould Resources -7 0 29 157 0.135 $ 46,440,655.17
KAI Kairos Minerals -7 -7 -27 -23 0.027 $ 45,424,995.78
KAU Kaiser Reef -7 -2 -33 -51 0.2 $ 23,872,039.23
HRZ Horizon -7 4 -4 24 0.13 $ 73,836,776.00
CAI Calidus Resources -7 -3 22 -4 0.585 $ 234,057,533.00
CDT Castle Minerals -7 44 63 160 0.026 $ 21,983,616.28
RSG Resolute Mining -7 -15 -42 -56 0.3475 $ 380,856,374.40
MXR Maximus Resources -7 -19 -20 -57 0.063 $ 19,072,081.92
EVN Evolution Mining -7 6 -29 -27 3.76 $ 7,057,079,579.55
AXE Archer Materials -7 -22 61 122 1.19 $ 293,367,140.30
CXU Cauldron Energy -7 -4 -40 -22 0.025 $ 12,282,340.75
RDT Red Dirt Metals -8 -2 366 125 0.675 $ 169,645,407.88
ALY Alchemy Resource -8 -8 -28 -39 0.012 $ 11,428,138.68
HXG Hexagon Energy -8 -18 -6 39 0.082 $ 36,573,133.81
OBM Ora Banda Mining -8 -13 -67 -76 0.07 $ 68,195,715.35
SLR Silver Lake Resource -8 -7 -19 -16 1.55 $ 1,412,207,087.34
VAN Vango Mining -8 -8 -14 -17 0.057 $ 73,076,382.66
AVW Avira Resources -8 -8 -8 -35 0.0055 $ 9,453,345.00
LCY Legacy Iron Ore -8 69 38 267 0.022 $ 134,499,508.86
PDI Predictive Disc -8 19 100 286 0.22 $ 300,120,174.64
BRV Big River Gold -8 -14 -41 -53 0.22 $ 48,277,339.44
MAT Matsa Resources -9 -12 -36 -56 0.053 $ 19,340,349.48
ZAG Zuleika Gold -9 5 -45 -67 0.021 $ 7,791,774.09
GML Gateway Mining -9 -9 -30 -47 0.0155 $ 34,728,372.65
BDCDB Bardoc Gold -9 -12 -21 -21 0.35 $ 101,223,347.05
SBM St Barbara Limited -9 -10 -33 -51 1.2625 $ 918,837,528.46
SBR Sabre Resources -9 0 0 -55 0.005 $ 8,446,568.25
STK Strickland Metals -9 -17 130 30 0.069 $ 83,854,365.43
SAU Southern Gold -9 -16 -21 -41 0.059 $ 12,586,396.60
CEL Challenger Exp -10 6 -2 36 0.285 $ 287,454,025.38
LRL Labyrinth Resources -10 -3 -27 46 0.038 $ 30,434,641.97
NST Northern Star -10 -2 -23 -32 8.84 $ 10,539,731,350.95
OZM Ozaurum Resources -10 -10 -18   0.135 $ 7,724,160.00
TG1 Techgen Metals -10 -8 -22   0.175 $ 7,837,589.88
XAM Xanadu Mines -10 -4 -43 -30 0.026 $ 33,994,019.25
CHZ Chesser Resources -10 -7 -10 -42 0.13 $ 62,841,976.88
AQI Alicanto Min -10 -16 -7 4 0.13 $ 49,752,770.21
KTA Krakatoa Resources -11 -16 -6 -22 0.051 $ 14,735,495.85
ARN Aldoro Resources -11 -26 31 170 0.405 $ 37,788,275.33
WGX Westgold Resources. -11 -2 -18 -28 1.845 $ 776,530,502.95
MBK Metal Bank -11 0 -7 -24 0.008 $ 9,512,546.43
A8G Australasian Metals -11 -27 159   0.44 $ 17,039,164.89
TAR Taruga Minerals -11 -9 -57 -22 0.04 $ 20,482,400.24
DTR Dateline Resources -11 -8 -1 58 0.079 $ 34,596,608.65
GOR Gold Road Res -11 -2 -12 4 1.335 $ 1,194,839,055.56
S2R S2 Resources -11 22 22 -25 0.195 $ 67,711,222.45
NES Nelson Resources. -11 -26 -48 -50 0.031 $ 6,023,058.05
TLM Talisman Mining -11 7 -30 41 0.155 $ 29,099,622.04
BEZ Besragoldinc -12 -18     0.115 $ 19,762,745.40
PRU Perseus Mining -12 -6 5 24 1.475 $ 1,852,950,550.70
SPQ Superior Resources -12 0 36 -6 0.015 $ 27,685,388.54
PUR Pursuit Minerals -12 -21 -62 36 0.03 $ 29,984,445.31
RMS Ramelius Resources -12 -9 -26 -18 1.4575 $ 1,280,739,214.50
PKO Peako Limited -12 -4 -37 0 0.022 $ 6,785,990.22
ICG Inca Minerals -12 -36 -42 50 0.087 $ 42,323,152.70
A1G African Gold . -12 -22 -27 11 0.18 $ 21,403,859.04
AZL Arizona Lithium -12 -20 229 820 0.092 $ 180,741,438.41
OAU Ora Gold Limited -13 6 -33 -36 0.014 $ 12,631,428.33
GNM Great Northern -13 -13 -56 -59 0.007 $ 8,463,356.83
KRM Kingsrose Mining -13 21 29 105 0.076 $ 56,732,975.37
BTR Brightstar Resources -13 2 37 -31 0.048 $ 26,249,321.71
RRL Regis Resources -13 -13 -35 -56 1.6725 $ 1,301,989,114.05
M24 Mamba Exploration -14 -7 -30   0.19 $ 7,400,000.00
TRM Truscott Mining Corp -14 3 -9 50 0.03 $ 4,558,246.32
DEX Duke Exploration -14 -5 -57 -52 0.18 $ 17,591,174.64
DLC Delecta Limited -14 -20 100 100 0.012 $ 14,458,904.46
KNB Koonenberrygold -14 -14     0.15 $ 11,117,434.20
AWJ Auric Mining -15 -4 -26   0.115 $ 6,447,976.06
AZS Azure Minerals -16 -21 19 -62 0.32 $ 97,881,752.12
ENR Encounter Resources -16 -35 -18 -15 0.13 $ 44,354,355.64
SNG Siren Gold -16 -10 -13 -58 0.305 $ 25,316,283.75
STN Saturn Metals -17 -2 -6 -38 0.45 $ 50,887,129.50
E2M E2 Metals -17 23 -9 -57 0.29 $ 42,131,939.64
PNM Pacific Nickel Mines -20 -37 52 43 0.076 $ 18,621,811.76
AYM Australia United Min -20 -20 14 -11 0.008 $ 14,740,619.88
BRB Breaker Res NL -21 -17 62 62 0.3 $ 94,493,869.41
ANL Amani Gold -25 -40 50 50 0.0015 $ 32,813,346.16

 

 

Weekly stock focus

Dacian Gold (ASX:DCN) has returned to the market chasing cash for its Mt Morgans gold mine near Laverton in WA’s Goldfields.

The $200 million capped gold miner entered a trading halt seeking $20 million in a fully underwritten raising to complete pre-stripping at its “thicker, higher grading” ‘Doublejay’ orebody by March 2022.

Dacian will have cash and gold on hand before costs of $36.8m.

The gold miner produced 15,819oz at an AISC of $2,362/oz in the September quarter, with FY2022 guidance of 100,000-110,000oz at an AISC of $1550-$1700/oz.

 

 

Northern Star Resources (ASX:NST)  subscribed for a C$154m ($169 million Aussie) convertible note that will give it an exclusive option for a 50% share in Osisko Mining’s Windfall project.

‘Windfall’ is a high-grade exploration and development asset in Canada’s Quebec Province.

It contains an indicated mineral resource of 1.857Moz at an ultra-high grade of 9.6g/t, with a further 4.24Moz at 8g/t in inferred resources.

That would underpin a mine with a 300,000ozpa capacity over its first 7 years, operating at all-in sustaining costs of just US$610/oz.

First production is pencilled in for 2024.

 

 

And West African Resources (ASX:WAF) has finalised the acquisition of the 6.8Moz Kiaka gold mine in the hopes of becoming a 400,000ozpa producer by the middle of the decade.

Having kicked off production at the Sanbrado mine in Burkina Faso in March 2020 at the start of the Covid-19 pandemic, WAF is now one of the lowest cost mid-tier gold producers on the ASX.

It is on track to beat the 280,000oz upper end of its production guidance in its first full year of operations in 2021.

 

The post Gold Digger: An inflationary bomb is about to go off. It’s time to prepare for the next gold bull market appeared first on Stockhead.

Author: Reuben Adams

Precious Metals

Oklahoma to Consider Holding Gold and Silver, Removing Income Taxes

Legislators in Oklahoma aim to protect state funds with physical gold and silver and remove capital gains taxes from gold and silver transactions  ?…

(Oklahoma City, Oklahoma — January 20, 2022) – An Oklahoma state representative introduced legislation today that would enable the State Treasurer to protect Sooner State funds from inflation and financial risk by holding physical gold and silver.

Introduced by Rep. Sean Roberts, HB 3681 would include physical gold and silver, owned directly, to the list of permissible investments that the State Treasurer can hold. Currently, Oklahoma money managers are largely relegated to investing in low-yield, dollar-denominated debt instruments.

Other than Ohio, no state is currently known to hold any precious metals, even as inflation and financial turmoil accelerate globally. Yes, Oklahoma’s own investment guidance prescribes safety of principal as a primary objective for investment of public funds.

“Currency debasement caused by federal monetary and fiscal policies has created an imminent risk of a substantial erosion in the value of Oklahoma’s investment holdings,” said Jp Cortez, policy director of the Sound Money Defense League.

“With most taxpayer funds currently held in debt paper carrying a negative real return, Oklahoma would be prudent to hedge today’s serious inflation risks with an allocation to the monetary metals.”

HB 3681 simply adds the authority to hold physical gold and silver bullion directly – and in a manner that does not assume the counterparty and default risks involved with other state holdings. Rep. Roberts’ measure does not grant authority to buy mining stocks, futures contracts, or other gold derivatives.

Additionally, HB 3681 prescribes safekeeping and storage requirements. The State Treasurer would hold the state’s bullion in a qualifying, insured, and independently audited depository, free of any encumbrances and physically segregated from other holdings.

Oklahoma has become a sound money hotspot, already earning 11th place on the 2021 Sound Money Index.

The Sooner State ended sales taxes on purchases of precious metals long ago. This week, Sen. Nathan Dahm introduced SB 1480, a measure to remove Oklahoma state income taxes from the exchange or sale of gold and silver sales.

The Sound Money Defense League and Money Metals Exchange strongly support these pro-sound money measures in Oklahoma and are actively working to ensure their success. Tennessee, MississippiKentucky, and Alabama are just a few of the other states fighting their own sound money battles in 2022.

      

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Precious Metals

Gold Uptrend Confirmed

It’s been a turbulent start to the year for the major market averages, with many sectors like Retail (XRT) and Staples (XLP) being hit by inflationary…

It’s been a turbulent start to the year for the major market averages, with many sectors like Retail (XRT) and Staples (XLP) being hit by inflationary pressures and continued supply chain headwinds while worries about rate hikes leading to a cool-down in valuations in tech. However, one asset class that is holding its ground is gold (GLD), which is up 1% year-to-date, outperforming the Nasdaq by 700 basis points. This outperformance appears more than overdue, with gold typically performing its best when real rates are deep in negative territory, in line with the current backdrop. Let’s take a closer look below:

(Source: YCharts.com, Author’s Chart)

Looking at the chart above, we can see that real rates continue to trend lower and are now sitting at their lowest levels in decades, spurred by continued high single-digit inflation readings. This backdrop has typically been very favorable for gold, given that investors are not getting interest elsewhere, meaning there is no opportunity cost to holding the metal, and there is an opportunity cost to holding cash. The one impediment to gold’s performance, though, has been the fact that the major market averages have been climbing higher with a relentless bid, allowing investors to park their cash safely in the market.

Chart, line chart

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However, since the year began, this does not appear to be the case, and gold is massively outperforming the S&P-500, as well as growth and value ETFs. This has created a perfect storm for the metal, and its outperformance can be highlighted by the above chart, which shows gold recently breaking out to new multi-week highs vs. the S&P-500. A new trend upwards following a period of significant underperformance has typically led to sustained rallies in the gold price, with the most recent example being February 2020 ($1,500/oz to $2,050/oz). Hence, this is a very positive development for the gold bulls.

The key, however, is that gold’s outperformance vs. the S&P-500 is not simply due to the S&P-500 being in a bear market and gold trending lower, but just losing less ground. The good news is that this is not the case, with the monthly chart for gold showing that it is building a massive cup and handle, with much of its handle being built above its prior resistance. This is a very bullish long-term pattern, and a successful breakout above $2,000/oz would target a move to at least $2,350/oz. 

Chart

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(Source: TC2000.com)

Meanwhile, if we look at the yearly chart above, we can see an even better look at the cup and handle pattern and why the discussion that gold is dead or in a deep downtrend is simply incorrect. While one can certainly make the case that gold has gone nowhere over the past 18 months and the daily chart remains volatile, the big picture has rarely looked better in the past several decades, and zero technical damage has been done. So, for investors looking for an asset with a favorable fundamental backdrop that’s also sporting a very attractive looking long-term chart, I am hard-pressed to find anything as attractive as gold among the 150+ ETFs and assets I track. 

Chart, line chart

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(Source: TC2000.com)

So, what’s the best course of action?

One of my favored ways to play the gold sector is Agnico Eagle Mines (AEM). The reason is that it has one of the best margin profiles sector-wide; the potential to increase production by more than 30% over the next nine years, and it operates out of the most attractive jurisdictions globally. This is evidenced by the fact that AEM should be able to grow annual gold production from ~3.4 million ounces to ~4.5 million ounces between now and 2030 and has 50% margins at a $1,800/oz gold price. 

Chart

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(Source: TC2000.com)

As the chart above shows, AEM’s technical picture continues to improve, with the stock building a 10+ year cup and handle base atop its prior multi-decade breakout level. This is a very bullish pattern, and a breakout above $70.00 would target a move above $95.00 in the next two years. So, with the stock consolidating near the right side of its cup and trading at a very attractive valuation of 1.0x P/NAV, I see this as an attractive entry point. Notably, AEM also pays a ~2.7% dividend yield, double that of the S&P-500. For those preferring to invest in gold, I continue to expect a trend of higher lows, with the $1,750/oz – $1,780/oz area representing a very low-risk buy zone. 

It’s no secret that GLD has massively underperformed other ETFs over the past 18 months, and with many focused on the last shiny thing and having recency bias, it’s no surprise that gold remains out of favor. However, the best time to buy the metal is when it’s been hated and has corrected sharply from its highs, making this an attractive entry point. Given that most other ETFs could use a rest, and the fundamental backdrop remains very favorable for gold, I remain medium-term and long-term bullish, and I would not be surprised to see gold above $2,080/oz this year. 

Disclosure: I am long GLD, AEM

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Given the volatility in the precious metals sector, position sizing is critical, so when buying precious metals stocks, position sizes should be limited to 5% or less of one’s portfolio.

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Economics

Buy Sofi Technologies Stock If There’s Another Rate Hike Selloff

The Sofi Technologies (NASDAQ:SOFI) pullback, which started in November, has carried on into the new year. Since the start of 2022, SOFI stock has taken…

The Sofi Technologies (NASDAQ:SOFI) pullback, which started in November, has carried on into the new year. Since the start of 2022, SOFI stock has taken another 5% plunge, changing hands now for around $15 per share.

Source: rafapress / Shutterstock.com

What has caused this continued decline for the fintech play? The prospect of higher interest rates in 2022. The U.S. Federal Reserve plans to raise interest rates at least three times this year. Generally, higher rates mean lower valuation multiples for growth stocks.

Worse yet, another selloff caused by rate hikes could occur soon. That is, if the Fed’s response to inflation ends up happening at a faster pace, as some analysts are starting to predict. That steeper climb in interest rates will likely cause more multiple compression. But while bad for the near term, this isn’t a reason to skip out on SOFI stock entirely.

Like I’ve discussed before, further volatility caused by interest rate changes could push Sofi to a “can’t miss” entry point. Not only that, a larger increase in interest rates will bode well for the company’s underlying business. SOFI may not be a buy today, but it’s one to keep an eye on in case it takes another dive.

The Latest with SOFI Stock

With recent news suggesting the Fed would raise rates faster and sooner this year, growth plays found themselves under pressure. That resulted in another round of declines.

This factor and, to a lesser extent bearish forecasts for fintech from the sell-side, has caused the additional drop in SOFI stock. Interest rate fears could cool off again in the immediate term. For now, the market may believe it has readjusted valuations to reflect likely rate increases. However, between now and when the Fed officially raises rates in March, we may see another wave of volatility.

Why? Well, there could be more than just three interest rate increases in 2022. Even worse, the size of each increase could be greater than just 25 basis points (0.25%). Of course, that’s not to say the Fed is ready to heed outspoken billionaire Bill Ackman, who recently called for an initial 50 basis point (0.5%) jump in interest rates. Still, when it comes to upcoming rate hikes, it may be wise to expect the unexpected.

Given that inflation is at multi-decade highs, the central bank may end up taking drastic action. A big spike in interest rates could mean another round of big declines for the stocks that thrived during the pandemic’s near-zero interest rate environment.

Higher Interest Rates Have a Silver Lining

If the scenario described above plays out, SOFI stock could plunge again, even as it continues to have a very high rate of projected annual revenue growth (43.3% this year). Of course, a potential plunge to under $10 per share may appear discouraging on the onset. Many other former special purpose acquisition companies (SPACs) have fallen below their intial $10 per share price and haven’t returned to double digits. However, I wouldn’t view a move to under $10 as any sort of “game over” moment. In fact, I would view it as an opportunity.

Unlike some other SPAC deals, the underlying business here is strong. Based on Sofi’s last reported quarterly results, the fintech firm appears set to continue scaling up. Someday it could become one of the top digital-first financial supermarkets like Block (NYSE:SQ) and PayPal (NASDAQ:PYPL).

After the market absorbs interest rate changes, continued strong results will enable SOFI stock to start bouncing back. Along with this, other positive developments could help fuel it to higher prices —  including a development enhanced by higher interest rates.

The development? When Sofi obtains a bank charter. This is expected to happen sometime in 2022. Getting a bank charter is already seen as a game-changer for Sofi. But investors should also take into account how rising rates are a positive for banking profitability. Sofi’s move into more traditional lending operations could enable it to get out of the red much sooner.

Sofi Is a Buy if It Drops Again

All told, my take on Sofi Technologies is largely unchanged from past articles. In a nutshell, waiting for another pullback is the best move here. Sure, there is a risk that its current price is the bottom. Shares could bounce back and see investors missing out on the recovery.

Then again, as it appears more likely that the market will have at least one more negative reaction to rising interest rates? The opportunity to lock down a long-term position in SOFI stock at lower prices looks likely. When it comes to this name, wait for that moment before buying.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.

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